Alibaba invests in clothes sharing platform Ycloset
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Alibaba has invested an undisclosed figure in Chinese garment-sharing platform YCloset.
The site’s strategic fundraising round that secured the Alibaba funding will be used to expand its data analysis functions and physical operations centres.
The Beijing-based service allows users to rent clothes and accessories for a monthly subscription fee. It has more than 15 million registered users and provides a range of subscription plans and options to purchase garments.
YCloset CEO Liu Mengyuan said wearing fashionable clothes will “always top the agenda of almost every woman”.
“Compared with buying items in a store, clothes rental services will allow women to update their looks more frequently and wear more dresses that they could not afford to buy.”
He added that the company will cooperate with a number of e-commerce platforms including Xianyu, Taobao, Tmall and Alipay.
Alibaba Innovation Ventures was among the investors who raised $50 million for YCloset last year in a series C fundraising round.
Questions & Answers
Q.What is the primary purpose of the funds raised by YCloset in this strategic round?
What is the primary purpose of the funds raised by YCloset in this strategic round?
The investment secured by YCloset will be used to enhance its data analysis capabilities and expand its physical operations centres. This strategic funding round aims to improve efficiency and service delivery within the platform.
Q.Which other e-commerce platforms will YCloset be working with following this investment?
Which other e-commerce platforms will YCloset be working with following this investment?
YCloset plans to collaborate with several e-commerce platforms, including Xianyu, Taobao, Tmall, and Alipay. These partnerships aim to broaden the service's reach and integrate its offerings within the wider digital marketplace.
Q.What business model does YCloset operate under for its users?
What business model does YCloset operate under for its users?
YCloset allows its registered users to rent clothes and accessories through a monthly subscription service. Users also have the option to purchase garments if they wish, providing flexibility in how they access fashion.
Q.Why does YCloset's CEO believe clothes rental services are appealing to women?
Why does YCloset's CEO believe clothes rental services are appealing to women?
The CEO, Liu Mengyuan, believes rental services enable women to update their looks more frequently than buying items. It also allows them to wear a wider variety of dresses they might not otherwise be able to afford.
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